The ones that don't rent are basically ones which are lower-quality properties," he said.

"Tenants are becoming far more pickier - as they should be."

About 350 Hawke's Bay rental properties are listed on the Trade Me website.

Mr Faulkner said two and three-bedroom homes were the most popular rental properties in the Bay: "About close to 50 per cent of what we rent out are three-bedroom houses."

Another 25 per cent were two-bedroom homes.

Well-insulated homes close to town also were popular, he said.

Nationally, the average asking rent in the three months to March was 3 per cent higher than the same period last year - despite weaker market interest and higher numbers of available rentals.

Brendon Skipper, head of Property at Trade Me, said investors returning to property had contributed to the overall increase in rental properties, which was up 5 per cent compared to last year, figures showed.